Analysis: Cryptocurrency Rebound Continues as BTC Climbs Above $4500

Analysis: Cryptocurrency Rebound Continues as BTC Climbs Above $4500

Introduction

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Huge moves continue to dominate the crypto segment, as the most valuable coins regained a large chunk of their recent plunge with Bitcoin leading the way higher. The rally cleared the short-term oversold readings of the decline and the dominant currency is now at make-or-break levels, with the $4400 level being the most important support/resistance line from a technical perspective. A deeper correction is still likely given the long-term picture, with the $3800, $3500, and $3150 levels providing strong support, and resistance being ahead at $5000.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

BTC/USD, 4-Hour Chart Analysis

NEO continues to be the most volatile of majors, as it is the most affected by the Chinese ICO ban, and today it is down by double digits once again, being the only large coin sporting a loss. Ethereum is also underperforming Bitcoin in the rebound and the other majors, such as Litecoin, Dash, Monero, NEM, and Ripple are also well below their previous highs, amid the geopolitical tensions, that favor the safe haven of BTC. The short-term picture is neutral for most of the coins we track, but let’s see the details of the technical outlook.

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH reached up above the $330 resistance level during the bounce and it’s getting close to cleat the short-term oversold readings as well. The coin is less stretched than BTC regarding the long-term picture but more sideways corrective price action is likely before a move towards the all-time high near $400. Further support is found near $300, $285 and $250, while primary resistance is ahead at $380.

Litecoin

LTC/USD, 4-Hour Chart Analysis

LTC registered one of the strongest rebound among the majors, trading near the 480 level very close to its prior sustained high. The coin is near the upper boundary of its long-term trendline, and it is still overbought from an investment standpoint, but a short-term rally to test or even surpass is possible given the somewhat late break-out. Support is found near $64, $56, and at $51.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash spiked above the $360 resistance during the bounce today in early trading, but it now trades back below that level, and it might be ready to head lower again in the coming days. The long-term picture is clearly overbought, and the coin is still likely to dip below $300 before a sustained move higher, with further support found at $265, and resistance ahead near $400.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is still trading in a broad consolidation pattern after its break-out from the long-standing downtrend, as it currently stands at the $0.22 resistance after today’s bounce. The declining short-term trendline is now found near $0.24, with further levels ahead at $0.26 and near $0.30. The long-term picture is not as stretched as some of the other majors, and we expect outperformance from the coin in the coming weeks, with support just below $0.20 and near $0.18.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic produced a healthy bounce, after touching the $16 support and it is trading above the $18 level as well. The coin is still in a similar position to Ripple, still not being overbought regarding the long-term picture. We still expect the currency to reach a new high in the coming period, but more volatility expected in the short-term as the broad correction unfolds in the segment.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is trading just below the crucial $125 support/resistance level after rallying off the $100 support. The coin is following the broader market thanks to the elevated correlation in the sector, and we expect more downside following the huge rally of the previous weeks. Below $100 strong support is still found near $72 and around $58.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM is still trading in a short-term range within a broader consolidation pattern against BTC. The currency is just below the 0.000065 support/resistance level, with further levels at 0.0000575 and at 0.000048, while strong resistance is ahead at 0.00009.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is still the most volatile coin, and it is heavily underperforming the other majors today, falling back to the $20 level after trading near $25 yesterday. The coin remains 60% below its all-time high following the Monday-crash, and it is expected to remain volatile as the market digests the ICO ban. Above $25 strong resistance is ahead at $30 and near $44, while primary support is near $16.

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Posted on 8:07 pm September 6, 2017.

Hi Mate – I have been subscribing to your site for a few months and find it invaluable…I would never be able to make the decisions on when and which coins to invest in without it, although I do need to kick the greed and learn when to take a good profit… One thing I rely heavily on is knowing the support & resistance levels and the highlight comments (i.e. overbought, consolidating etc.) Is there any chance you could create a table, maybe on a few days/weekly basis that just has this information on, so it is to hand quickly?

Posted on 10:57 pm September 6, 2017.

My very first trade was LTC from $29 to $45 on Mate’s recommendation – which happened in under two weeks as I recall. 50% on one trade in under 2-weeks had me pretty blown away. Subsequently I’ve managed to liquidate ~24 hours before the last two major crypto corrections on Mate’s general advice/guidance; I’ve learned a ton. I made the mistake of pulling out on an initial $300 eth position, and a $67 ltc position – primarily spooked by the prospect of deeper correction. The moral of the story for me has been to 1. set reasonable profit targets, 2. stick to those targets, 3. attenuate risk, particularly with 4. sensible stop losses. Watching volatility in ethereum is INCREDIBLY nerve wracking once I place a position.

Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More

Jonas Borchgrevink

Founder

Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More

Mate Csar

Analyst

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More

Mati Greenspan

Analyst

Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More

Rakesh Upadhyay

Analyst

Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More

Pamela Meropiali

Account Manager

Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More

Joseph Young

Journalist

Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More